IDEAS home Printed from https://ideas.repec.org/a/pid/journl/v36y1997i4p839-854.html

Financial Market Reform in Pakistan

Author

Listed:
  • Nadeem Ul Haque

    (International Monetary Fund, Washington, D.C., USA.)

Abstract

The paper argues that the finance diménsion of economic development has often been treated as an afterthought by researchers and politicians alike, because it is considered to be too "sophisticated" to matter for "simple" economies. The role of the financial sector was considered to be primarily for mobilising resources to increase growth. However, experience has also revealed that financial development, including stock market development, is correlated with current and future economic growth, capital accumulation, and productivity improvements. It is suggested that a strategy for financial market development in emerging economies is better evolved from the perspective of the "functions" of financial markets as envisaged in modern financial literature. It is also argued that financial sector policies in emerging economies should focus on enhancing, rather than inhibiting, the multiple roles of financial markets.

Suggested Citation

  • Nadeem Ul Haque, 1997. "Financial Market Reform in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 36(4), pages 839-854.
    • Handle: RePEc:pid:journl:v:36:y:1997:i:4:p:839-854
    as

    Download full text from publisher

    File URL: http://www.pide.org.pk/pdf/PDR/1997/Volume4/839-854.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ross Levine, 1997. "Financial Development and Economic Growth: Views and Agenda," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 688-726, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ahmad, Usman & Farooq, Shujaat & Jalil, Hafiz Hanzla, 2009. "Efficiency Dynamics and Financial Reforms: Case Study of Pakistani Banks," MPRA Paper 15054, University Library of Munich, Germany.
    2. Kalbe Abbas & Manzoor Hussain Malik, 2008. "Impact of Financial Liberalisation and Deregulation on Banking Sector in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(3), pages 287-313.
    3. Daniel C. Hardy, 2001. "Profitability and Pricing in Treasury Bill Auctions: Evidence from Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 40(1), pages 27-48.
    4. International Monetary Fund, 2001. "Bank Reform and Bank Efficiency in Pakistan," IMF Working Papers 2001/138, International Monetary Fund.
    5. Jaffry, Shabbar & Ghulam, Yaseen & Cox, Joe, 2013. "Trends in efficiency in response to regulatory reforms: The case of Indian and Pakistani commercial banks," European Journal of Operational Research, Elsevier, vol. 226(1), pages 122-131.
    6. Muhammad Wajid Raza & Hassan Muhsin, 2013. "Financial Liberalization and Macroeconomic Performance: Empirical Evidence from Selected Asian Countries," International Journal of Financial Economics, Research Academy of Social Sciences, vol. 1(1), pages 16-27.
    7. Bonaccorsi di Patti, Emilia & Hardy, Daniel C., 2005. "Financial sector liberalization, bank privatization, and efficiency: Evidence from Pakistan," Journal of Banking & Finance, Elsevier, vol. 29(8-9), pages 2381-2406, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jung-Suk Yu & M. Kabir Hassan & Abdullah Mamun & Abul Hassan, 2014. "Financial Sectors Reform and Economic Growth in Morocco: An Empirical Analysis," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 13(1), pages 69-102, April.
    2. Oro, Oro Ufuo & Alagidede, Paul, 2018. "The Nature of the finance–growth relationship: Evidence from a panel of oil-producing countries," Economic Analysis and Policy, Elsevier, vol. 60(C), pages 89-102.
    3. Lu, Yao & Zhan, Shuwei & Zhan, Minghua, 2024. "Has FinTech changed the sensitivity of corporate investment to interest rates?—Evidence from China," Research in International Business and Finance, Elsevier, vol. 68(C).
    4. Maswana, Jean-Claude, 2006. "An empirical investigation around the finance-growth puzzle in China with a particular focus on causality and efficiency considerations," MPRA Paper 3946, University Library of Munich, Germany, revised Apr 2006.
    5. Okey O. Ovat & Rimamtanung Nyiputen Ishaku & Malachy Ashywel Ugbaka & Eugene Okoi Ifere, 2022. "Monetary Policy Rate and Economic Growth in Nigeria," International Journal of Economics and Financial Issues, Econjournals, vol. 12(3), pages 53-59, May.
    6. Ho, Chun-Yu, 2012. "Market structure, welfare, and banking reform in China," Journal of Comparative Economics, Elsevier, vol. 40(2), pages 291-313.
    7. Mansur, Alfan & Nizar, Muhammad Afdi, 2023. "Supply-leading or demand-following financial sector and economic development nexus: evidence from data-rich Indonesia," MPRA Paper 119132, University Library of Munich, Germany, revised 10 Nov 2023.
    8. Lerner, Josh & Shane, Hilary & Tsai, Alexander, 2003. "Do equity financing cycles matter? evidence from biotechnology alliances," Journal of Financial Economics, Elsevier, vol. 67(3), pages 411-446, March.
    9. Veronika Kajurová & Petr Rozmahel, 2016. "Stock Market Development and Economic Growth: Evidence from the European Union," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 64(6), pages 1927-1936.
    10. Michele Peruzzi & Alessio Terzi, 2018. "Growth Accelerations Strategies," Growth Lab Working Papers 112, Harvard's Growth Lab.
    11. James R. Tybout, 2000. "Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 11-44, March.
    12. Xiaofei Song, 2024. "Fair values in extreme markets," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(4), pages 3443-3467, December.
    13. Fatma Tasdemir, 2023. "Do Capital Flows Cause (De)-Industrialization?," Working Papers 1693, Economic Research Forum, revised 20 Dec 2023.
    14. Asongu, Simplice A. & Nchofoung, Tii N., 2025. "The terrorism-finance nexus contingent on globalisation and governance dynamics in Africa," International Economics, Elsevier, vol. 183(C).
    15. Kathleen M. Kahle & René M. Stulz, 2017. "Is the US Public Corporation in Trouble?," Journal of Economic Perspectives, American Economic Association, vol. 31(3), pages 67-88, Summer.
    16. Halldén, Filip & Hultberg, Anna & Ahmed, Ali & Uddin, Gazi Salah & Yahya, Muhammad & Troster, Victor, 2025. "The role of institutional quality on public renewable energy investments," Renewable and Sustainable Energy Reviews, Elsevier, vol. 215(C).
    17. Njangang Henri & Nembot Ndeffo Luc & Nawo Larissa, 2019. "The Long‐run and Short‐run Effects of Foreign Direct Investment on Financial Development in African Countries," African Development Review, African Development Bank, vol. 31(2), pages 216-229, June.
    18. Bernard Yeung & Randall Morck & Daniel Wolfenzon, 2004. "Corporate Governance, Economic Entrenchment and Growth," Working Papers 04-21, New York University, Leonard N. Stern School of Business, Department of Economics.
    19. Moshe Hazan & David Weiss & Hosny Zoabi, 2019. "Women's Liberation as a Financial Innovation," Journal of Finance, American Finance Association, vol. 74(6), pages 2915-2956, December.
    20. Stephen G Cecchetti & Alfonso Flores-Lagunes & Stefan Krause, 2005. "Assessing the Sources of Changes in the Volatility of Real Growth," RBA Annual Conference Volume (Discontinued), in: Christopher Kent & David Norman (ed.),The Changing Nature of the Business Cycle, Reserve Bank of Australia.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:36:y:1997:i:4:p:839-854. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Khurram Iqbal (email available below). General contact details of provider: https://edirc.repec.org/data/pideipk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.